By Ts Dr. Hj Ramli Amir, former President of the Chartered Institute of Logistics and Transport (CILT) Malaysia and Vice-President of CILT International for Southeast Asia
KOTA KINABALU: The Sabah Logistics Council (SLC) serves as a central authority to address the fragmented logistics landscape in Sabah. With a focus on holistic solutions, the SLC integrates stakeholders from the government, private sector, and logistics industry to drive trade facilitation and enhance the supply chain economy. By addressing inefficiencies, creating policies, and implementing targeted projects, the SLC’s ultimate goal is to establish Sabah’s first comprehensive transport masterplan, providing a strategic framework for long-term sustainable growth.
Integrated Infrastructure Planning:
Addressing Connectivity Gaps
Sabah’s logistics ecosystem is constrained by poor infrastructure linkages between critical trade hubs such as the Sapangar Bay Container Port (SBCP) and industrial zones like the Kota Kinabalu Industrial Park (KKIP). The SLC prioritises infrastructure projects that bridge these gaps, enabling seamless cargo transport, reducing transit times, and lowering costs.
Coordinated Efforts:
The SLC ensures that infrastructure projects are developed through close coordination between government agencies, private developers, and logistics operators. This approach avoids duplication of efforts, aligns projects with industrial needs, and ensures efficient use of resources. For instance, road expansions and port upgrades are planned alongside industrial growth, preventing bottlenecks.
Future-Oriented Planning:
To future-proof Sabah’s infrastructure, the SLC incorporates modern technologies and sustainability requirements. For example, new road links may include smart traffic management systems and renewable energy-powered facilities to accommodate emerging demands while minimising environmental impact.
Promoting Intermodal Connectivity
Reducing Overreliance on Road Transport:
Currently, Sabah relies heavily on road transport, leading to congestion and inefficiencies. The SLC advocates for intermodal solutions that integrate road, rail, and sea networks, offering flexibility and reducing costs.
Game-Changing Rail Links:
A proposed rail link between major ports like SBCP and inland industrial zones could significantly enhance cargo transport efficiency. Rail transport is faster, cheaper, and more sustainable than road transport for bulk goods, making it an ideal complement to the existing logistics network.
Empowering Rural Economies:
Intermodal solutions can extend beyond urban centres to rural districts such as Tenom and Keningau. By connecting rural producers to larger trade hubs through feeder services and multimodal options, the SLC can stimulate local economies and improve market access for agricultural and artisanal products.
Encouraging Technology Adoption
Streamlining Operations:
Modern logistics rely on technology to reduce inefficiencies and improve competitiveness. The SLC encourages stakeholders to adopt automation, AI-driven cargo tracking, and digital platforms for customs clearance, transforming manual processes into efficient digital operations.
Showcasing Pilot Projects:
Pilot projects, such as automated cargo handling at SBCP, can serve as successful models for broader adoption. For example, automating container handling reduces turnaround times and boosts port throughput, while AI-powered route optimisation can save costs and improve delivery reliability.
Facilitating Funding and Support:
To accelerate technology adoption, the SLC can collaborate with stakeholders to secure funding, provide tax incentives, and offer technical support. This ensures that even smaller players in Sabah’s logistics sector can access modern tools and technologies.
Centralised Data Management
Informed Decision-Making:
A centralised logistics data platform enables stakeholders to make informed decisions by providing insights into cargo flows, trade volumes, and transport demand. For example, data analytics can identify underutilised feeder services between Kudat Port and SBCP, allowing for schedule optimisation and better resource allocation.
Real-Time Analytics:
With real-time data, logistics operators can anticipate and address bottlenecks, plan capacity expansions, and improve supply chain performance. The SLC can use these insights to guide infrastructure investments and policy changes that align with trade and economic growth.
Future-Ready Planning:
Centralised data management also supports long-term forecasting, helping stakeholders anticipate trends and adapt to emerging trade opportunities. This ensures that Sabah’s logistics network evolves in line with regional and global economic demands.
Focusing on Sustainability
Promoting Green Logistics:
The SLC aims to position Sabah as a leader in sustainable logistics by encouraging the adoption of green practices. Policies such as subsidies for electric trucks, hybrid cargo vessels, and renewable energy-powered warehouses can significantly reduce the environmental impact of logistics operations.
Eco-Friendly Trade Corridors:
Developing eco-friendly trade corridors powered by solar-charged electric vehicles or hybrid transport systems can enhance Sabah’s reputation as an environmentally conscious logistics hub. These corridors would cater to high-traffic routes, such as those connecting SBCP with KKIP, while minimising carbon emissions.
Carbon Offsetting and Efficiency:
The SLC can also introduce carbon offset programmes and energy-efficient technologies to reduce the logistics sector’s overall carbon footprint. This aligns Sabah with global sustainability standards, attracting environmentally conscious investors and trade partners.
Capacity Building and Workforce Development
Collaboration with Educational Institutions:
The SLC can work with institutions like University College Sabah Foundation (UCSF) to design industry-focused training programmes. These programmes could cover supply chain management, digital logistics tools, and sustainable transport practices, equipping the workforce with relevant skills.
Upskilling the Workforce:
By providing training in advanced logistics technologies and practices, the SLC can upskill the current workforce to handle modernised systems, such as automated cargo management or AI-driven analytics.
Preparing Future Professionals
Capacity-building initiatives can prepare the next generation of logistics professionals to lead Sabah’s logistics sector. By nurturing a skilled talent pool, the SLC ensures long-term resilience and competitiveness in the face of evolving industry demands.
The Road to a Transport Masterplan
A Strategic Blueprint:
The transport masterplan will be a comprehensive document outlining short-, medium-, and long-term strategies to address current challenges while preparing Sabah’s logistics network for future demands. It will prioritise multimodal connectivity, digital transformation, and sustainability.
Key Infrastructure Investments:
The masterplan will identify critical infrastructure projects, such as road expansions, rail links, and port upgrades, that align with trade and industrial needs. These investments will address bottlenecks, reduce costs, and enhance Sabah’s competitiveness in regional and global markets.
Policy and Innovation:
The masterplan will also outline policy interventions, such as incentives for green logistics and technology adoption, to foster innovation and align Sabah with global best practices. It will provide a clear roadmap for public and private stakeholders to work towards shared objectives.
Unlocking Economic Opportunities:
By creating an efficient, resilient, and sustainable logistics framework, the masterplan will unlock new economic opportunities for Sabah. It will attract investments, stimulate local industries, and position the state as a dynamic player in global trade.
Conclusion
The Sabah Logistics Council has a transformative role to play in addressing Sabah’s fragmented logistics landscape. By prioritising integrated infrastructure, promoting intermodal solutions, leveraging technology, and fostering sustainability, the SLC can create a logistics ecosystem that supports trade facilitation and economic growth. The development of Sabah’s first transport masterplan will be a milestone achievement, ensuring that Sabah thrives as a competitive and sustainable logistics hub in the years to come.
